...The Right Stance By Caltex in South Africa? The Right Stand By Caltex in South Africa? In looking back in retrospect over things that have happened in an individual’s life as well as events in the world, it is both difficult and easy to look at a tense, volatile situation in the present and decide which course of action might have been the better choice. There is also no denying that it is difficult for leadership of all levels to decide if the needs of the group as a whole outweigh the needs of those few who are not satisfied for whatever reason. Often many managers in a business setting find themselves weighing the decision to push forward to do what it takes to earn a profit for the organization or side with personal morals in key decisions. The following are issues both positive and negative that were facing Caltex in 1977 as they were looking building a plant in South Africa: Positive • Caltex had a clear responsibility to develop income for their shareholders. • By building this plant, Caltex estimated a 20% annual return on the original investment. • Caltex was committed to improving the economic condition of its employees in South Africa. • If Caltex had not decided to build the plant, another company may have stepped in to do so; one who whose morals and ethics may not have been so focused. Negative • South Africa had enacted a policy for decades known as apartheid (where the black majority was suppressed by the white minority). • Apartheid negated basic...
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...CALTEX 1 CALTEX IN SOUTH AFRICA VANESSA HARRISON-HARVEY PHI445 PERSONAL & ORGANIZATIONAL ETHICS INSTRUCTOR: KRISTINE OUZTS JANUARY 30, 2012 Running Head: CALTEX 2 Why did Caltex decide to bring their business to South Africa? Was it for profit alone? In the case of Caltex there were situations that were created by Caltex that the company should have made a decision on: (a) In 1977 the South African people believed apartheid as being cruel and definitely immoral (b) Not building the plant would open the door for a more less moral and ethical situation (c) Multinational companies also had both moral and ethical responsibility Caltex was a joint subsidiary of Texaco and Standard Oil that maintained extensive and growing refinery operations in South Africa which benefited the South African economy. The utilitarian benefits for building Caltex plant in 1977 were less important than the violations of moral rights and justice. Better living wage and better job conditions were offered by Caltex; the most important issue in South Africa was the removal of apartheid. Several arguments needed to be answered: (a) what were the moral and ethical standards regarding political systems, where corporate responsibility that has a mandate to make companies aware of their position. Standard Oil and Texaco were under no legal or even moral obligation and (b) what economic benefits could the companies bring to South Africa with economic power, the...
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...mind when the Case Study of Caltrex are exposed. This controversy that occurred was one of the most horrific yet historic events in our pastime. This showed many examples of how management of companies has the responsibilities beyond normal duties to ensure a high return for stockholders. Investments should always carry high criteria before making the investment because people’s livelihood depends on it. In this case, stockholders Texaco and SoCal invested in an oil company named Caltrex to give them a high return of its investment although the trust was severed by racism and government greed lend to an end result of sense of unjust ethics such as care and virtue. Caltrex was an American oil company that operated several oil refineries in South Africa during a time of hatred and racism. Texaco and Standard Oil were jointly owned with Caltrex. It was under the Apartheid legislation which deprived the entire black population by giving them no rights at all. This included segregation of blacks and whites, blacks could not vote and were not allowed to socialize with white people. South Africa depended on oil for most of their energy needs and this was a crucial resource for them. The African law that was in place at that time established a percentage of the income be set aside for the government. This raised great concern with shareholders as they felt they were funding a nation for whites only. Corporate taxes ensured that Caltrex revenues would go to the government annually.(Velasquez...
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...Investment 1 South Africa Investment August 30, 2010 Investment 2 I feel that Texaco and SoCal should be forced to terminate their operations in South African because of the unfit working conditions of the South African People. I find it absolutely amazing that such inhuman working condition and treat still exist towards certain minorities. The conditions that some of the oil refiners have to endure is not easy to bear. The workers that are unwilling to participate in the wrongful working condition are beaten, imprisoned and killed. The South African Minorities have no voice in society because they were never given any rights. The South African apartheid system legalizes racial discrimination and limits the black population from their normal human rights. I cannot believe a company like Texaco and SoCal could have ownership in a country that has a government that has such discriminating practices. Texaco and SoCal are opposed to ideal of terminating any involvement with South African oil refiners because they would stand to lose millions of dollars. This becomes of issues of whether it is ethical for a large oil company such as Texaco to stay loyal to its shareholders by making as much profit as possible or doing the right thing by pulling out of South Africa. You have to question how many other major companies that we rely to function day to day are actually involved in some form of corruption within their company. I think that Texaco and SoCal...
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...Response to a South Africa Investment Leon Grier Personal & Organizational Ethics Dr. Tina Engle March 19, 2012 Response to a South Africa Investment In my judgment one of the benefits to continue with the expansion project of the Caltex plant is it would continue to keep Caltex black employees employed. Caltex has improved the life of its current minority employees even though the country itself hasn’t tried to improve the welfare of the rest of the black community. Another benefit is that that expansion project promised an annual return of 20 percent on the original investment, which is good for the shareholders. Finally, the benefit that I see is that Caltex is helping the economy of the South Africa by continuing its oil operations in its country. On the other hand by continuing operations in South Africa, and they are helping the government financially support the mistreatment of the black community. If Standard and Texaco did not build the plant, someone else would, likely a company with less global standards or stake in moral and ethical dilemmas. While most reasonable people, even in 1977, found apartheid to be cruel, unjust, and certainly morally wrong, one can think that it would be easier to change a situation from the inside out rather than the outside in. Even Caltex ended operations there in South Africa, the employees that had a little of success would be forced to return to where they began. Apartheid laws were designed to preserve the racial purity...
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...Doing Business in South Africa For years, South Africa’s Afrikaner Nationalist Party was conducting all types of racial attacks that were raising ethical issues. Along with the South African government, they reshaped racial laws and regulations, continuing with violence against blacks. Nonwhites outnumbered whites by about 5 to 1. Violence consisted of the Sharpeville massacre, the Soweto Street death demonstration, and the death of black leader who was in police custody. Through such acts, South Africa’s direct investment rose dramatically. In 1960, the Pan-African Congress allowed blacks to be free of passbooks, which listed their name, birth place, tribal affiliation, arrests, contained their picture, serial number, and a receipt that was signed by their employer. Once they were without them, they were allowed to roam the streets. In March of 1960, blacks descended upon police stations, demanding to be arrested. They were unarmed and were not participating in violent acts. At the Sharpeville police station, 20,000 blacks turned up, surrounding the police station and barricaded themselves behind a fence. The 20 police officers were reinforced with 130 other officers with armored cars. Along with the officers were Sabre jets and Harvard Trainers that flew toward the crowd, hoping to scatter it. In response to this attempt, the crowd began to throw stones. During this time, 3 police officers were injured. Not long after the incident, officers tried to seize someone. When...
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...Globalization in South Africa Regarding the globalization of South Africa, the lifting of the apartheid policy caused a dramatic shift in the both the political and economic policies of the nation. Furthermore, this was absolutely pivotal to the growth and progression of a nation that has now become a major emerging market and one of the world’s largest exporters of metals and minerals. South Africa is a country located on the southern tip of Africa. South Africa has had a long history of colonialism under both the British and the Dutch. The discovery of diamonds and gold in this region spurred the development of the area and immigration to the region while suppressing its native populations. And while the control the empires retained over their colonies was crumbling, South Africa as a colony did as well. It was granted independence in 1931, but when the Nationalist Party took power in 1948, it strengthened the segregationist policies that were established under colonial rule. South Africa finally achieved a full democracy with the elections of 1994, the first time the black population was allowed to vote, bringing the African National Congress (ANC) to power with Nelson Mandela as its leader. This officially brought an end to apartheid and marked the beginning of new era for the country. Although South Africa was formally granted independence in 1931, the South Africa that we know today didn’t exist until early 1990’s when apartheid was lifted. The policy of...
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...Research Proposal: A CRITICAL ANALYSIS ON THE IMPLICATIONS AND EFFECTS OF CORRUPTION IN THE SOUTH AFRICAN ECONOMY AND HOW IT CAN BE MANAGED About the writer: Tyson Thamsanqa Sibanda Rosebank College South Africa: Bachelor of Business Administration 3 (2015) Contact details; Tyson.msimanga@gmail.com 0027786500000 / 0027815993434 BACKGROUND AND ORIGIN Corruption in South Africa has been so widespread that, unless it is decisively tackled in this presidential term, there is a real danger that it will become embedded as a ‘normal’ aspect of life in our country. Once it becomes part of the ‘culture’ of our society, it will be almost unmanageable to uproot. Corruption is generally defined as the abuse of public office for private gain. It usually comes in two forms. Firstly, the alleged ‘big-time’ corruption which take place when public officials bend the rules to channel patronage to relatives, friends and associates, or accept bribes; as well when private agents bribe public officials to give them exclusive advantages or privileges. Secondly, there is the quiet corruption, which occurs when public servants purposefully neglect their duties to provide public services or goods. Quiet corruption may not involve an exchange of money, but involves providers of public services such as teachers, nurses or other government officials, twisting the rules for their own private welfares. This includes, for example, public servants, such as a minister or nurses not turning up for work when...
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... changed. 2. But, due to official wasteful government spending and corruption, foreigners find their influences and beliefs are repudiated. 3. Mr. Kagame’s economic goal for Rwanda is: spurring private investment. 4. The Rwandan government places no limit on foreign ownership and is growing at 8.8% a year. 5. What is happening in Nigeria that is impeding economic stability? Rising Nigeria's Violence Imperils Stability. Religious and economic grievances are coalescing into a dangerous mix that threatens the country's stability—and reflects other African security challenges. A political body representing Nigeria's Kano-based Igbo people, mostly Christians from the country's south, asked governors in the group's heartland to provide transportation for as many as three million people seeking to flee the mainly Muslim north. 6. China’s direct investment in Africa rose 87% to $1.1 billion during first ¾ of 2011. INFORMAL INSTITUTIONS: culture, norms, ethics 7. Mr. Shah visited the US and studied Kmart, then using the same business model and cultural values, built the top Supermarket Chain in East Africa. 8. Regional economic growth in Africa is being fueled by young, African banks, but hindered by Weak infrastructure. 9. The pictures of middle class African teenagers show they value: 1) Family and 2) Friendship. 10. The Chinese waitress in Nigeria shows the cultural norms of that country when she makes fun of patrons who do not for not drinking or eating...
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...Case: Anglo American PLC in South Africa (from Lesson 5) 1 Who are the various stakeholders that Anglo American needs to consider as it adopts an effective HIV/AIDs strategy? - Anglo American employees and their families - Government bodies - Non- Profit organizations (NGOs)/ World Health Organization (WHO) - Competitors/ Other large mining concerns or companies operating in South Africa - Pharmaceutical companies - National Union of Mine Workers - Financial Institutions - Shareholders 2 What are the pros and cons of Anglo American’s adoption of an aggressive strategy in combating HIV/AIDS among its South African workforce? What recommendations would you give the company concerning its HIV/AIDS policy? Pros: - Prevented further operating loss and increased productivity. - Bright future as government started national strategic plan to combat HIV/AIDS. - By adopting the strategy, the company achieves trust and commitment from ethical minded shareholders. - It got good response from WHO, Global business council for HIV/AIDS and other NGOs, this makes the company a socially responsible organization in Global business. - It became a trend setter for other major companies operating in South Africa, thus gaining a goodwill among other companies Cons: -This program had spiraling costs for the company as the distribution of the medicines remained high. - It was unable to determine if its efforts are making a difference in underlying problem as one...
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...evaluate the major economic impacts of MNEs on home and host countries • To establish the foundations for responsible behavior • To discuss some key issues of globalization and society—ethics and bribery, the environment, pharmaceuticals, and labor issues • To examine corporate responses to globalization Chapter Overview Globalization has become a major socioeconomic force and topic of debate in the twenty-first century. While Chapter One examines the forces and criticisms associated with the globalization process, Chapter Five focuses upon the impact of foreign direct investment on home and host countries. Following an explanation of the balance-of-payments effects of FDI, a series of ethical issues concerning the social responsibilities of MNEs is explored. The cultural and legal foundations of ethical behavior are examined, and the challenges of global warming, pharmaceutical sales, and child labor are highlighted. The chapter concludes with a brief discussion of the need for corporate codes of ethics. Chapter Outline OPENING CASE: ENVIRONMENTAL CHALLENGES FOR NEWMONT MINING IN INDONESIA [See Map 5.1.] This case illustrates the effects of the changing and conflicting attitudes of the national and local Indonesian governments toward foreign direct investment. Headquartered in Denver, Colorado, Newmont Mining is the second largest producer of gold worldwide. Nonetheless, Newmont has decided to close one of its two Indonesian mining operations...
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...AngloAmerican [pic] Business ethics and corporate social responsibility 1. Introduction Anglo American is one of the world’s leading mining companies. It is a UK public limited company and operates on a global scale. Anglo American operates mainly in the primary sector of the world economy. This, as the name suggests, covers industries involved in the first stage of economic activity, such as mining and agriculture. [pic] Anglo American operates throughout the world. It has extensive operations in Africa, where 76% of its employees live. It is also a major employer in Europe. Its Tarmac aggregates and construction products business employs nearly 7,000 people in the UK. As a primary producer, Anglo American plays an important role in the world economy. Anglo American produces five main types of raw material. [pic] Mining operations can have a big impact on the environment and on the societies where they work. Since most mineral resources belong to nation states, mining companies largely depend upon a licence to operate from governments. This allows them to extract and process minerals in return for investment and the payment of taxes and royalties. Increasingly it is also important to get the consent of local communities to mining development – a ‘social licence’ to operate. Like all businesses, mining companies are under increasing scrutiny from pressure groups as well as the general public. Anglo American seeks to adopt fair and sound business practice. The company...
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...Topic: Skills development in the financial sector: A Namibian case study HN Muyoba Student No. MYBHER001 Assignment 1: Literature Review Research Methods BUS5004W MPhil: People Management (2014 intake) Contents 1. Introduction 3 1.1 Definitions 3 1.2 Background of the Study 4 1.3 Aims of the Study 5 1.4 Study objectives 5 2 The research problem 6 3 Research Questions: 6 4 Literature review 6 4.1 International perspective 6 4.2 African perspective 8 4.3 Namibian perspective 9 5 Conclusion 12 6 Bibliography 13 1. Introduction A functional financial sector is essential for economic development. Importantly, a strong financial sector, however, relies not only on the sound organized infrastructure, but also on the ability of its human resources. Human resources are critical in the development of the financial sector. Investments in human capital are influential in shaping the financial services industry where knowledge, skill, competencies and capabilities have become key strategic drivers of productivity, competitiveness and growth (BNM Financial Sector Development, 2015). With globalization, the need for capacity building in any country’s financial sectors becomes even more critical to ensure that experts within the industry will be able to keep up with the new changes brought about by the implementation of the international financial standards, such as IFRIS. In the next decade, there are likely to be many changes...
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...contracting by 4.7% in 2009. That being said, the economy has now recovered to pre-crisis levels with growth reaching 7% in 2010, shown to be a larger growth than almost all European counterparts. Despite the economic and political expansion in the last 10 years, Turkey’s battle with corruption, unemployment, income inequalities, and the Kurdish problem have been risk factors for any business that considers investing. According to corruption rankings, Turkey was ranked below South Africa, and tied for a spot with Cuba (Transparency International, 2010). Sociopolitical Structure Turkey is a parliamentary democracy with a free market economy. Since legal reforms instituted in 1926, Turkey's judicial system has been based on the Swiss Civil Code, the Italian Penal Code, and the Neuchâtel (Swiss) Code of Civil Procedure. The 1982 Constitution guarantees judicial independence, and prohibits any government agency or individual from interfering with the operations of the courts and judges (Country Studies, 2010). The presence and the systematic implementation of these laws create an open path for Foreign Direct Investments; the intellectual property rights are also in favor of the proprietor. Despite a volatile past that...
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...a, CHINA IN AFRICA --SUMMARY BY MATTHIAS SUMPF Content Introduction............................................................................................................................................. 2 Main part ................................................................................................................................................. 2 Background and context ..................................................................................................................... 2 China’s approach on getting closer with Africa ................................................................................... 2 Facts and figures.................................................................................................................................. 3 Other interests .................................................................................................................................... 3 China vs. the West ............................................................................................................................... 3 Chinese emigration and its impact ...................................................................................................... 4 Africa’s relation with China ................................................................................................................. 5 The West’s reaction.......................................................................................................
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